The Sunday morning news. [volume] (Jersey City [N.J.]) 1886-1891, 1887-03-27
BEFORE THE STATE BOARD.
THE CENTRAL RAILROAD CONTESTTNG
THE BOARDS TALUATION OF 1886.


unrris's Wonderful Figures.
The Central Railroad Company of New
Jersey is again taking testimony before
the State Board of Assessors. 1t has buried
the Ratchet since the decision of the Court
of Errors against 1t, and made its peace
with the State Board on all the latters val
nations of different divisions, and sub-divi-
sions of its property, save the items of
property which are considered as property
other than mainstem--which includes the
great terminal lands at Communipaw, Port
Johnston and Eizabethport-and that
much talk ed of-what-is-it which the Board
has seen fit to call franchise and the
Court-while it gave no particular reason
for dropping the very apropos word used
by the Board-saw fit to term "adventi-
tious value" Several witnesses have been
sworn by Master in Chancery Van Cleef,
before whom the testimony is being taken IN
Trenton Elk Chancellor w liamson andRob-
ert w. DeForest,a as usual, repre- senting the
railroad company, and ex-Judge William
7. Hoffman appearing on behalf of the
State. 1t will be remembered that the
Court in is decision indicated that it may
be induced to accept the valuation of the
land as laid down by the assessors in their
assessment of adjoining property in the
the several tsxing districts. The SUNDAY
MORNING NEWS more than two years ago
gave sufficient outline of this class of tes-
timony to prove how utterly unreliable it
is. Particularly was this found to be the
case in the city Of Elizabeth where it was
conclusively shown by their own testimony
that the local assessors valuations were
based solely on what they guessed was the
value of the property. One of these men
was a blacksmith, one--if the NEWS mis-
takes not--a jeweler, and none of them,
with one or two trifng exceptions, were
capable of performing the functions of their
Office than their cats, if they had any The
roiroad company, in giving evidence con-
corning the valuations of last year, evil
IDENTIFY not willing to swear these intelligent
sres of Union County politics, sought the
Commiss oners of Taxation appointed un-
der the famous bill "467," which ex Gov
ernor Albeit drew and had passed for the
relief of Elizabeth, and had them go over
the property as to the value of which there
was a dispute, for the purpose of giving
their evidence before the State Board of
Assessors. One of these commissions rs
DR.. Henry r. Cannon, VINO for more than
twenty years was County Clerk of Union
County was put on the stand few days ago
DIR. Cannon is very intelligent gentleman.
no doubt; but he evidentlN does not of
his own knowledge know much about |!
properties in the city of Elizabeth. His /
direct examination by Mr.. De Forrest puz- !:
zled the State lawyers, as well as the as
SCISSORS to such an extent that one of the !
latter was heard to exclaim at the close of !
the examination, 'sIf Cannon's valuations I:
are sustained, then will resign as a mem |
Der Of this Board
But, two days after this, Judge Hoffman :
took up the Witness and for three hours /
handled him without gloves. The Judge |
got from the witness the tact that since the /
date of his direct examination. he has gone
over much of the property of which he had |
testified and as to portion of it he con- |
cluded that instead of 81 900 an acre-the |
value first put upon tit was worth 50, 600. |
For ten minutes the counsel endeavored to 1
get the doctor to say, that if he had been |
Yaluing the property for assessment pur-
poses for the city of Elizabeth on the day |
he put price of 81, 900 an acre on it, he |
would have valued it at the same rate, or |
had he been CROSS examined on the same
day Mr.. D.. Forest examined him his esti- |
mate of 81 600 an acre would have stood, |
but il was no CO. The doctor lodged and |
evaded the questions of counsel till both |
grew weary, after he had admitted the last
fact. But the witness was not to be let up |
SO easy. He was piled with all sorts of
questions in all sorts of shapes as to his
method of valuation, and when tired and
weary the Judge said ''that's all. the wit
ness had not only acknowledged his ignor-
ance as to the large prices paid for proper |
ties IN the vicinity of the plots under dis
eussion, but in some instances as to the !,
very plots themselves. His figures were
based almost entirely upon the information
of the field men and consul
tations with his associates, particularly Mr..
Frohwein-a German druggist when
he was cal ed to the stand, at the coHclu-
sion Of the doctors testimony; was dis
posed of very quickly on the cross-examin-
alton, the whole sum and substance of |
which was that all of his valuations were
based on guess work, pure and simple.
This, of course, knocks Doctor Cannon's |
testimony, which was based largely on
Frohweins opinion, into smithereens Far |
the most intelligent witness in the case is
Joseph s. Harris, at present one of the |
Receivers of the Central. Mr.. Harris is a
man Of large railroad experience and |
whatever he says carries great weight and |
cannot be controverted without due coI.
sideration. He was examined before the
State Board on Friday as to the franchise |
value. He gave it as his opinion that
while the opinion of the Court as to the
value of franchise was good one theoreti- |
ically there were many millions that should |
be taken out of the franchise value of the |
Central 'sWhere railroad has been
built" he says, ''by the issue of bonds and |
stock, and all the stock and bonds SO issued
are issued in payment for property and
for no other purpose and where, in |
addition, railroad is run independently
SO that its earnings fairly represent it's in
come and where no value is given to the
stock and bonds SO issued, by guarntee or
otherwise, so that their value depends
solely upon he value of the property they